Ledgers are your accounts. Each ledger is one account you record money against, such as Cash in Hand, a customer, VAT Payable or Electricity Expense. Every voucher you enter posts to ledgers.
When to use it
Your company starts with a full chart of accounts. Come here when you need an account that the standard chart does not have.
Before you start
- Account Groups should exist first, because your ledger sits inside a group.
- You need an admin or accounts role.
Where to find it
Masters > Account Master > Ledger.
The fields on this screen
| Section | Field (on screen) | What to enter | Required |
|---|---|---|---|
| Ledger Details | Ledger Name | Name of the account as it should appear in your books and reports. Keep it unique. | Yes |
| Ledger Details | Ledger Group | The group this account sits under. It decides where the balance appears in the Balance Sheet or P&L. | Yes |
| Ledger Details | Ledger Type | What kind of account this is, such as Cash, Bank, Sundry Debtors or VAT. | Yes |
| Costing Effect | Is Cost Element | Tick to treat this ledger as a manufacturing cost element. Set its type and behaviour under Cost Element Ledgers. | No |
| Configuration | Intercompany - represents org | Set only when this account stands for a sister company. Its balances drop out of group reports. | No |
A note on customers, vendors and banks
Do not add customers, vendors or bank accounts here. Use their own screens (Customer/Vendor and Cash/Bank Account), which set the correct type for you. This Ledger screen is for general accounts.
Adding a record
- Open Masters > Account Master > Ledger.
- Click Add / New.
- Enter the Ledger Name, then pick the Ledger Group and Ledger Type.
- Click Save.
Changing or deleting a record
- To edit, open the ledger from the list, make the change and Save.
- Do not delete a ledger that has transactions against it. It holds your history.
Worked example
To add an electricity expense account, enter:
- Ledger Name: Electricity Expense, Ledger Group: Administrative Expenses, Ledger Type: Electricity Expense.
Tips and common mistakes
- Put the ledger in the right group. The group decides whether it shows on the Balance Sheet or the Profit & Loss.
- Ledger names must be unique.